In most states, all misdemeanors and felony cases are prosecuted by warrant. The offense of Deposit Account Fraud is a felony where the check is for an amount in excess of five hundred dollars ($500.00) or where the check is drawn on an out of state bank, regardless of the amount of the check.

The charge of a deceptive practice through a bad check in Illinois pursuant to paragraph (1) above is a Class A misdemeanor if the value does not exceed $150, and a Class 4 felony if the value does exceed $150.

Illinois Bad Checks / Financial Institution Fraud Penalties Financial Institution Fraud that where the total value of stolen money is between $301 and $10,000 is a Class 3 Felony which carries a possible sentence of up to 5 years in a state penitentiary and/or a fine of up to $25,000.

The criminal offense of fraud can involve many actions, some of which a person may not even realize are illegal. In Illinois, the penalties for various fraud-related crimes can be steep, including jail time and costly fines, which can all significantly impact your personal and professional life.

Fraud

A first offense of check fraud or theft by bad check is a Class A misdemeanor, punishable by jail time, fines and other penalties. However, a deceptive practice rises to a Class 4 felony for repeat offenses or when the amount of fraudulent checks (single or collectively) exceeds $150.

How to Handle Bad Checks

1. All checks should have the name, address, and telephone number of the person signing the check so you can contact them if the PTA receives a bad check.
2. Require the check writer to pay a service charge in addition to any bank charges the PTA receives from a bad check.

A bounced check penalty from a bank can cost around $35 in the form of a nonsufficient funds fee. Merchants can also charge a bounced check fee; they typically cost $20 to $40. You could face other consequences for bouncing a check, including getting written up or having the bank close your account.

Deceptive practices. A person commits a deceptive practice when, with intent to defraud, the person does any of the following: (1) He or she knowingly causes another, by deception or threat, to execute a document disposing of property or a document by which a pecuniary obligation is incurred.

1 : a trade practice with respect to the public or a competitor that is forbidden by statute and that is therefore subject to control by a federal trade commission. 2 : unfair competition.

Consumer fraud is commonly defined as deceptive business practices that cause consumers to suffer financial or other losses. Fraud against consumers is often related to false promises or inaccurate claims made to consumers, as well as practices that directly cheat consumers out of their money.

Section 5(a) of the Federal Trade Commission Act (FTC Act) (15 USC §45) prohibits “unfair or deceptive acts or practices in or affecting commerce.” This prohibition applies to all persons engaged in commerce, including banks. The legal standards for unfairness and deception are independent of each other.

UDAAP is an acronym referring to unfair, deceptive, or abusive acts or practices by those who offer financial products or services to consumers. UDAAPs are illegal, according to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Administrative Enforcement of Consumer Protection and Competition Laws. Under Section 5(b) of the FTC Act, the Commission may challenge “unfair or deceptive act[s] or practice[s],” “unfair methods of competition,” or violations of other laws enforced through the FTC Act, by instituting an administrative adjudication. …

The Federal Trade Commission enforces a variety of antitrust and consumer protection laws affecting virtually every area of commerce, with some exceptions concerning banks, insurance companies, non-profits, transportation and communications common carriers, air carriers, and some other entities.

The FTC Franchise Rule is a federal regulation which requires franchisors to prepare an extensive disclosure document and give a copy of this document to any prospective franchise purchaser.

Criminal prosecutions are typically limited to intentional and clear violations such as when competitors fix prices or rig bids. The Sherman Act imposes criminal penalties of up to $100 million for a corporation and $1 million for an individual, along with up to 10 years in prison.

In addition to its authority to investigate law violations by individuals and businesses, the Commission also has federal rule-making authority to issue industry-wide regulations.

Lina Khan

Commissioners